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Re: Can you put after tax RMD withdrawals into ROTH?

Be sure to take out all of your RMD first before you withdraw the additional amount to convert. If you do them in the opposite order, you could be creating trouble.
by kaneohe
Fri Apr 18, 2014 3:53 pm
 
Forum: Investing - Help with Personal Investments
Topic: Can you put after tax RMD withdrawals into ROTH?
Replies: 25
Views: 1116

Re: Question on borrowing from IRA

Withholding from IRA distributions is not mandatory but you may have to sign something agreeing to 0 withholding with that institution.
by kaneohe
Fri Apr 18, 2014 3:45 pm
 
Forum: Investing - Help with Personal Investments
Topic: Question on borrowing from IRA
Replies: 12
Views: 633

Re: Little to no income for 2 years- take IRA RMDs up to 37k

Perhaps you can model it with an Excel spreadsheet in much more detail than a simple example below using your own crystal ball assumptions. Some simple extreme cases (pls check the math): 1) take everything out at 15% now. If you started with 10K in IRA, pay 1.5K in taxes and have 8.5K in taxable ac...
by kaneohe
Thu Apr 17, 2014 12:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Little to no income for 2 years- take IRA RMDs up to 37k?
Replies: 14
Views: 1163

Re: Little to no income for 2 years- take IRA RMDs up to 37k

If you are going to pay the taxes to withdraw excess funds (over RMD), would it make sense to do a Roth conversion on those excess funds (can't convert RMDs)? That way the gains will be tax-free instead of possibly subject to tax in a taxable account. Kaneohe, you must have missed the fact that thi...
by kaneohe
Wed Apr 16, 2014 11:06 pm
 
Forum: Personal Finance (Not Investing)
Topic: Little to no income for 2 years- take IRA RMDs up to 37k?
Replies: 14
Views: 1163

Re: Little to no income for 2 years- take IRA RMDs up to 37k

If you are going to pay the taxes to withdraw excess funds (over RMD), would it make sense to do a Roth conversion on those excess funds (can't convert RMDs)?
That way the gains will be tax-free instead of possibly subject to tax in a taxable account.
by kaneohe
Wed Apr 16, 2014 9:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Little to no income for 2 years- take IRA RMDs up to 37k?
Replies: 14
Views: 1163

Re: Should I be using standard or itemized deduction?

What's annoying about Standard vs Itemized is that if you are 65 or older (or blind), they just increase your Standard deduction by some amount. They do NOTHING to benefit older folks who are still itemizing deductions due to large property tax and/or state income tax payments. Or have I missed som...
by kaneohe
Tue Apr 15, 2014 7:46 pm
 
Forum: Personal Finance (Not Investing)
Topic: Should I be using standard or itemized deduction?
Replies: 10
Views: 692

Re: Estimated taxes on capital gains later offset by losses

http://www.irs.gov/pub/irs-pdf/f1040es.pdf

how about just filling out the wksht on p.7 and pretending you had perfect foresight into what was going to happen?
Then you end up w/ 0 payments due.
by kaneohe
Tue Apr 15, 2014 10:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Estimated taxes on capital gains later offset by losses
Replies: 7
Views: 491

Re: VA Question

don't think you can do that unless VA is really old : https://www.edwardjones.com/en_US/products/investments/annuities/annuities_tax/index.html Withdrawals – Withdrawals of earnings from a nonqualified annuity are fully taxable at ordinary income tax rates. Unless the annuity was purchased before Au...
by kaneohe
Tue Apr 15, 2014 8:39 am
 
Forum: Investing - Help with Personal Investments
Topic: VA Question
Replies: 4
Views: 458

Re: HSA cost benefit analysis

. Also, once you reach 65, you can withdraw funds tax free for non medical purposes. . Not really.........non-medical reimbursements are taxed but not penalized (additional tax). From Pub 969: Distributions From an HSA ......................................................................... You ca...
by kaneohe
Sun Apr 13, 2014 8:55 am
 
Forum: Personal Finance (Not Investing)
Topic: HSA cost benefit analysis
Replies: 23
Views: 1664

Re: Questions on Cashing Out ESPP

As previously suggested, you should model this w/ tax software/calculator. Based on this http://fairmark.com/general-taxation/reference-room/2014-tax-rate-schedules/ it may end up that all you will see is that the CGs get taxed at 15% regardless of the amount you sell (assuming 50K max gain) and you...
by kaneohe
Wed Apr 09, 2014 11:52 pm
 
Forum: Investing - Help with Personal Investments
Topic: Questions on Cashing Out ESPP
Replies: 2
Views: 230

Re: Reel Lawn Mowers

this? http://www.mowersdirect.com/stories/55-How-to-Pick-the-Perfect-Reel-Lawn-Mower.html Only thing I've ever owned. Blades get dull after a couple yrs and need to be sharpened which cost perhaps half the cost of the mower. Never heard of using the abrasive while mowing..............will have to in...
by kaneohe
Tue Apr 08, 2014 8:53 pm
 
Forum: Personal Consumer Issues
Topic: Reel Lawn Mowers
Replies: 19
Views: 959

Re: RMD question

ssc.............I thought I had seen Alan S. say you could break up the first RMD into 2 yrs if desired so that the choices ranged from RMD1 in yr 1 and RMD 2 in yr 2 to RMD1/2 in yr 2
or anything in between.
by kaneohe
Sun Apr 06, 2014 12:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: RMD question
Replies: 8
Views: 464

Re: Need to reduce AGI by $3000. Suggestions?

^ If using QCD, my understanding is that FIRST withdrawal annually from an IRA is considered the RMD, so that the QCD would have to be the FIRST withdrawal for it to be considered as part of the RMD. As BL notes below, it doesn't have to be the first withdrawal but it should be taken before the RMD...
by kaneohe
Sun Mar 30, 2014 5:30 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need to reduce AGI by $3000. Suggestions?
Replies: 14
Views: 1483

Re: Need to reduce AGI by $3000. Suggestions?

^ If using QCD, my understanding is that FIRST withdrawal annually from an IRA is considered the RMD, so that the QCD would have to be the FIRST withdrawal for it to be considered as part of the RMD. As BL notes below, it doesn't have to be the first withdrawal but it should be taken before the RMD...
by kaneohe
Sun Mar 30, 2014 5:17 pm
 
Forum: Personal Finance (Not Investing)
Topic: Need to reduce AGI by $3000. Suggestions?
Replies: 14
Views: 1483

Re: IRS Pub 550: Basis of Covered vs. Non-Covered Shares

p.46 of pub 550 has separate paragraphs for Election of Avg Basis of Covered Securities and Election of Avg Basis of Non-covered Securities which suggests that they are calculated
separately .
by kaneohe
Sun Mar 30, 2014 12:40 am
 
Forum: Personal Finance (Not Investing)
Topic: IRS Pub 550: Basis of Covered vs. Non-Covered Shares
Replies: 5
Views: 393

Re: Roth recharacterization- Form 8606T Explanation

perhaps also the date and the institutions involved so that even you could reconstruct the event years from now when you might be asked to prove what happened.
by kaneohe
Sat Mar 29, 2014 8:00 pm
 
Forum: Personal Finance (Not Investing)
Topic: Roth recharacterization- Form 8606T Explanation
Replies: 8
Views: 417

Re: IRS letter claiming return is late - anyone experience t

I always owe and I usually send in paper returns with a check. My CU tells me (via email) when they post the check to my account and provides a picture of the front and back of the check with the recipients endorsement. Easy to print and attach to the return for a record. Have never saw a need to s...
by kaneohe
Fri Mar 28, 2014 8:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: IRS letter claiming return is late - anyone experience this?
Replies: 34
Views: 3443

Re: Gift Tax and the 529b

ssc..........what about if 28K is contributed from a community property state from CP assets? Is 709 required or is assumed that the gift is split 50-50 between spouses? I vaguely recall the latter but perhaps you can put that on firmer ground or sink it.
by kaneohe
Fri Mar 28, 2014 1:18 am
 
Forum: Personal Finance (Not Investing)
Topic: Gift Tax and the 529b
Replies: 16
Views: 843

Re: Tax Lost Harvesting old Stocks That Have Gone to Zero

What was the valuation of these on the last brokerage statement? Sometimes they can be "worthless" but not really worthless. Like worth a penny. My impression is that you can't take a loss on those unless you give up all ownership by selling them..............perhaps for $5 or $10............
by kaneohe
Thu Mar 27, 2014 12:07 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Lost Harvesting old Stocks That Have Gone to Zero
Replies: 7
Views: 656

Re: IRA withdrawal taxation

here's a similar question from another forum https://www.irahelp.com/forum-post/18245-how-handle-401k-transfer-ro-ira Please read the part about F8606 which will document your basis (after tax contributions). You'll need to keep good records since it wounds like you don't file it until later, perhap...
by kaneohe
Wed Mar 26, 2014 3:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: IRA withdrawal taxation
Replies: 3
Views: 306

Re: Do I need to file form 8606 for my Roth conversion?

see Part 2 on p. 2 of F8606 http://www.irs.gov/pub/irs-pdf/f8606.pdf

Even if you didn't have non-deductible contributions, F8606 would need to be completed to document the Roth conversion.
by kaneohe
Wed Mar 26, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: Do I need to file form 8606 for my Roth conversion?
Replies: 6
Views: 595

Re: Quick 1099B question

Be sure that your reinvestments are included in your basis. Otherwise you will pay taxes on your distributions again.
by kaneohe
Tue Mar 25, 2014 7:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick 1099B question
Replies: 9
Views: 287

Re: Tax Court strikes a blow to IRA Rollovers

...My wife cleaned out an IRA in November (not 2013). I convinced her to send half back within 60 days. Then she took it back out, but by then it was the next (tax) year. It was a (partial) rollover from one custodian to the exact same custodian.... You have to wait more than one year from the firs...
by kaneohe
Fri Mar 21, 2014 6:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Court strikes a blow to IRA Rollovers
Replies: 98
Views: 11474

Re: Moving some IRA brokerage to bank IRA CDs

Another thing to consider: Schwab charges $25 for a partial withdrawal of IRA funds.......it's the same whether Schwab pushes, the other institution pulls, or if Schwab gives you a check made out to the other instituion. The only way to get $$$ out w/o a fee is to get a check made out to you. The la...
by kaneohe
Fri Mar 21, 2014 5:22 pm
 
Forum: Investing - Help with Personal Investments
Topic: Moving some IRA brokerage to bank IRA CDs
Replies: 3
Views: 315

Re: Doing my Taxes Myself(for now) but Need a Good Tax Forum

You could try fairmark.com. There are also some knowledgeable folks on bogleheads.
by kaneohe
Thu Mar 20, 2014 12:23 am
 
Forum: Personal Finance (Not Investing)
Topic: Doing my Taxes Myself(for now) but Need a Good Tax Forum
Replies: 4
Views: 543

Re: Form 8606 - Roth IRA Basis

Calm Man wrote:I The critical aspect of not allowing withdrawals of the earnings over the first 5 years after a contribution or conversion eludes me as it would be rather small relative to the contributions. .


and there's more beside the 5 yrs.......a small thing about age 59.5 y.o.
by kaneohe
Sun Mar 16, 2014 10:21 pm
 
Forum: Personal Finance (Not Investing)
Topic: Form 8606 - Roth IRA Basis
Replies: 28
Views: 1509

Re: Using Life Expectancy Tables for RMD

Thanks guys. From your answer I guess the RMD for 2014 is 5.37% of the 2013 year end balance and IRS life expectency is 18.6 years. So I will take out that amount and put a note for my taxes accordingly. now that you have your BS degree in RMDs (but be careful.......if ssc wasn't high on something,...
by kaneohe
Sun Mar 16, 2014 10:11 pm
 
Forum: Investing - Help with Personal Investments
Topic: Using Life Expectancy Tables for RMD
Replies: 22
Views: 1423

Re: Does this make sense? [Convert traditional IRA to Roth]

Perhaps......you should run your situation thru tax software or a calculator like Taxcaster to compare. Looks like you are probably in the 15% bracket now and might be, depending on income in the 0,10 or 15% bracket next yr depending on income. If in the 0% bracket, it would make sense; if in the 15...
by kaneohe
Tue Mar 11, 2014 10:14 pm
 
Forum: Investing - Help with Personal Investments
Topic: Does this make sense? [Convert traditional IRA to Roth]
Replies: 3
Views: 298

Re: Asset protection for rollover IRAs in Virginia

this one? http://www.assetprotectionsociety.org/pdf_files/APS.50.State.Summary.pdf
not sure how up to date or accurate......try looking up the VA code cited.
by kaneohe
Sun Mar 09, 2014 11:10 am
 
Forum: Investing - Help with Personal Investments
Topic: Asset protection for rollover IRAs in Virginia
Replies: 8
Views: 708

Re: convert to roth?

Are your other retirement vehicles filled 100% with fixed income? If not, would it make more sense to put the equity part in a taxable account where gains would be subject to LTCG and the fixed income in the retirement account? In other words, replace the non-deductible TIRA with a taxable account w...
by kaneohe
Sat Mar 08, 2014 4:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: convert to roth?
Replies: 9
Views: 698

Re: Tax Questions - Daughter in Medical School

Perhaps she will qualify as a qualifying relative http://www.irs.gov/publications/p17/ch03.html
if you can pass the various tests.
by kaneohe
Tue Feb 25, 2014 10:20 pm
 
Forum: Personal Finance (Not Investing)
Topic: Tax Questions - Daughter in Medical School
Replies: 9
Views: 870

Re: Fixing 8606 error, understanding IRA basis

F8606 tracks your basis (nontaxable). Everything else......deductible contributions, appreciation on all contributions (whether deductible or not) are pretax and will be taxed when withdrawn. You can think of the TIRA as a radiator with e.g. 4 qts of coolant(basis) and 6 qts of H20 (pretax contribut...
by kaneohe
Tue Feb 25, 2014 7:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Fixing 8606 error, understanding IRA basis
Replies: 4
Views: 325

Re: Leaving a small amount of student debt for child to pay

We did that with daughter's loans both for the learning experience of managing the debt and the supposed benefit of creating a credit history. She had the
assets to pay off the loan but we thought doing this way had additional benefits.
by kaneohe
Fri Feb 21, 2014 4:22 pm
 
Forum: Personal Finance (Not Investing)
Topic: Leaving a small amount of student debt for child to pay off?
Replies: 45
Views: 2649

Re: Non-Deductible IRA Contributions

I think 1987 was the first year when there were eligibility tests for deducting IRA contributions. Prior to that all IRA contributions were deductible. I agree w/ House Blend. I used to try to keep a pedigree of IRA contributions and where they were moved to. The chart shows regular contributions u...
by kaneohe
Fri Feb 21, 2014 2:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Non-Deductible IRA Contributions
Replies: 9
Views: 404

Re: Quick Pen Fed CD question

That monthly date seems to be fixed for an individual but varying between different people.
btw........do you watch your grass grow on a daily basis too :happy
That might be a good habit to drop esp you are going to apply it to your equity investments.
by kaneohe
Tue Feb 18, 2014 10:24 pm
 
Forum: Personal Finance (Not Investing)
Topic: Quick Pen Fed CD question [Account balance]
Replies: 8
Views: 703

Re: Cap gains question

Assuming long term capital gains. I make 100k only from investments. Do itemized deductions count towards this UNearned money? Ie- can I reduce my TAXABLE INCOME down to 72k so I am taxed at 0% long term cap gains? If so, assume I only get down to 80k TAXABLE INCOME , do I pay 0% cap gains on first...
by kaneohe
Tue Feb 18, 2014 11:33 am
 
Forum: Personal Finance (Not Investing)
Topic: Cap gains question
Replies: 9
Views: 586

Re: Grandmother, babysitting taxes, and DCA

I think that IRS pub mentioned in the link suggests she will file it as wages (W2) See instructions for line 7 on p. 20 http://www.irs.gov/pub/irs-pdf/i1040gi.pdf Household employees who don't get a W2( because income is less than some limit) file on line 7 so I would think if you get a W2 you would...
by kaneohe
Sat Feb 15, 2014 1:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Grandmother, babysitting taxes, and DCA
Replies: 5
Views: 535

Re: Grandmother, babysitting taxes, and DCA

I'm thinking that the "grandma" rule provides that neither you nor she pays SS/medicare taxes on the W2 income that you report although income tax is due on those earnings. http://fairmark.com/forum/read.php?4,73294 btrw......this is if the care is provided in your home so you are in emplo...
by kaneohe
Sat Feb 15, 2014 1:30 am
 
Forum: Personal Finance (Not Investing)
Topic: Grandmother, babysitting taxes, and DCA
Replies: 5
Views: 535

Re: Marginal tax rate: statutory 15%, effective 30%

Perhaps the wiki needs to have some numerical examples to really drive the concepts home. So join the party and be one of the people who is cracking you up. :wink: Kevin I bit.............. How about a sequence of questions or ilustrations such as: The tax table lists the 2014 boundary/border/barri...
by kaneohe
Mon Feb 10, 2014 10:09 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate: statutory 15%, effective 30%
Replies: 100
Views: 6856

Re: Marginal tax rate: statutory 15%, effective 30%

Of course for completeness, more sections would have to be added, since there's now range of LTCG&QD income that is taxed at 20%, but maybe not a good idea to make it more complicated to convey the concept, and that rate will apply to very few of us I think. Kevin I agree that it might not be a...
by kaneohe
Mon Feb 10, 2014 9:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate: statutory 15%, effective 30%
Replies: 100
Views: 6856

Re: Marginal tax rate: statutory 15%, effective 30%

So where is your wording? Give us a paragraph. we could state it accurately and cite actual IRS sources Give it a shot, stating accurately whatever your it is that you want to state accurately. Some of us, perhaps even the author of the sentences you find objectionable, would like to see your wordi...
by kaneohe
Mon Feb 10, 2014 3:34 pm
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate: statutory 15%, effective 30%
Replies: 100
Views: 6856

Re: Marginal tax rate: statutory 15%, effective 30%

Perhaps the wiki could benefit from tfb's (see Dec 11 5:26pm) "1000 words" here http://www.bogleheads.org/forum/viewtopic.php?f=10&t=86849
I've found the picture to be much more intuitive than words.
by kaneohe
Sun Feb 09, 2014 2:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Marginal tax rate: statutory 15%, effective 30%
Replies: 100
Views: 6856

Re: calculating rmd by OCD person

Mathematically they should be identical (A/Div) + (B/Div) = (A + B)/Div so perhaps one of you is rounding intermediate steps prematurely? This assumes all he divisors are the same......they may not be as Alan S. pointed out. sscritic has pointed out how rounding errors can occur if you don't carry e...
by kaneohe
Wed Feb 05, 2014 4:54 pm
 
Forum: Personal Finance (Not Investing)
Topic: calculating rmd by OCD person
Replies: 7
Views: 786

Re: Roth IRA Withdrawal Rule

Borrowing from a Roth is subject to the 60 day rule, but since you haven't yet filed, I don't know how that might be handled, but you should be careful of mishandling this since it has been recorded. Also, you can only borrow and replace once per 12 month period. Paul If done correctly, removal of ...
by kaneohe
Wed Feb 05, 2014 11:14 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Withdrawal Rule
Replies: 5
Views: 827

Re: Tax Court strikes a blow to IRA Rollovers

Hexdump...........I don't know the answer to your question but perhaps this datapoint might be interesting to you. A friend of mine took advantage of PF's deal to allow folks over 59.5yo to remove most funds from existing PF IRA CD to put in new higher APY PF IRA CD w/o early withdrawal penalty. The...
by kaneohe
Wed Feb 05, 2014 11:05 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax Court strikes a blow to IRA Rollovers
Replies: 98
Views: 11474

Re: Roth IRA Withdrawal Rule

You need to be sure that the broker knows you are withdrawing the 2013 contribution (and associated earnings). If you don't tell them that and just withdraw xxx $, they might not let you do the re-contribution since they might assume you are withdrawing older contributions. Note that the earnings ar...
by kaneohe
Tue Feb 04, 2014 1:16 pm
 
Forum: Investing - Help with Personal Investments
Topic: Roth IRA Withdrawal Rule
Replies: 5
Views: 827

Re: Withdraw from tIRA, Contribute to Roth IRA in same year?

I guess I'm not clear what you are trying to achieve......are your parents over 59.5y.o.? If yes, they can already withdraw from TIRA at any time w/o penalty although they would be taxed. If no, they would have to pay a penalty as well as the tax when they do as you propose. The Roth vs TIRA questio...
by kaneohe
Tue Feb 04, 2014 4:32 am
 
Forum: Investing - Help with Personal Investments
Topic: Withdraw from tIRA, Contribute to Roth IRA in same year?
Replies: 7
Views: 441

Re: AARP Medicare Supplement Ins (United Healthcare

Was going to post this on the other AARP thread but it got locked...........I believe you only have to be an AARP member in the year you sign up for the AARP medigap policy. After that you can let the membership lapse . I got the AARP Medigap without ever being an AARP member. It is just a United H...
by kaneohe
Mon Feb 03, 2014 11:53 am
 
Forum: Personal Finance (Not Investing)
Topic: AARP Medicare Supplement Ins (United Healthcare
Replies: 34
Views: 2183

Re: AARP Medicare Supplement Ins (United Healthcare

Was going to post this on the other AARP thread but it got locked...........I believe you only have to be an AARP member in the year you sign up for the AARP medigap policy. After that you can let the membership lapse .
by kaneohe
Sun Feb 02, 2014 8:48 pm
 
Forum: Personal Finance (Not Investing)
Topic: AARP Medicare Supplement Ins (United Healthcare
Replies: 34
Views: 2183

Re: AARP Medicare Supplement Ins (United Healthcare

My mother had United Health Medi-Gap F through AARP. She was critically ill and was in and out of hospitals the last 3 years of her life. Very expensive care. She never paid a dime more than her co-pays. did you mean never paid a dime more than her premiums? I don't think there are any copays or co...
by kaneohe
Sat Feb 01, 2014 8:40 pm
 
Forum: Personal Finance (Not Investing)
Topic: AARP Medicare Supplement Ins (United Healthcare
Replies: 34
Views: 2183
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